Breaking Down Student Debt: How California, Washington, and Oregon Compare

Rosa Matthews
Jun 9
4 min read

Image by 3D Animation Production Company from Pixabay

Student debt remains one of the biggest financial stressors for Americans today. As of late 2024, the total amount owed across the country hit a staggering $1.777 trillion, according to TICAS. But when you zero in on the West Coast, the story shifts a bit. California, Washington, and Oregon all show different patterns, influenced by policy, aid, and cost of living. Here's a closer look at how each state compares—and what it means for students and families planning for college.

The National Debt Picture: Setting the Stage

To understand where the West Coast stands, it's helpful to first look at the national backdrop. In 2019, college seniors graduating from public and nonprofit schools left with an average of $28,950 in student loans. About 62% of them had to take out loans to complete their degree, according to TICAS.

As of the end of 2024, the federal loan default rate was 4.86%, while private loans had a lower default rate of 1.61%.

Generally, high-debt states tend to cluster in the Northeast, whereas states with lower student debt are mostly found in the West—a trend that largely holds true in this analysis, though not without a few wrinkles.

California: Leading the Pack with Lower Debt

Among the three West Coast states, California students are graduating with the lightest debt load. Here's how things looked for the Class of 2020:

46% of graduates had student debt
Average debt per borrower: $21,125
Only 5% had private loans, which averaged $26,693
California ranked third lowest in the nation for student debt

One of the main reasons for these numbers is the state’s generous financial aid. The Cal Grant program alone contributes $2 billion in need-based support each year. Public colleges also help lighten the load—about 80% of California grads come from public institutions, which typically have lower tuition than private schools, according to state education data.

That said, it’s not all smooth sailing. California’s cost of living is 50% above the national average, with housing costs 116% higher—creating real challenges for graduates, especially low-income and minority students. Many face "unmet needs" as high as $9,000 annually at community colleges, $8,900 at CSUs, and $4,000 at UCs.

Washington: Solid Middle Ground

Washington falls somewhere in between its neighbours:

47% of grads had student debt
Average amount: $23,993
6% used private loans, which averaged $31,237
Washington ranked sixth lowest nationwide in graduate debt

Much like California, about 80% of students graduate from public schools.

The Washington College Grant (WCG) has been a game-changer—it can fully cover tuition at public in-state schools for eligible students.

But some policy shifts are on the way. Starting in Fall 2025, the income limit to receive full WCG aid will drop from 65% to 60% of the state’s median family income. This change could affect more than 4,000 students. Additionally, students at private institutions will see their maximum WCG support shrink by roughly $3,000 starting Fall 2026.

Oregon: Higher Debt Despite Western Location

Surprisingly, Oregon doesn’t follow the low-debt West Coast trend. Here's how it compares:

53% of grads carried student debt
Average debt: $26,504
8% had private loans, averaging $37,150

So why are Oregon students borrowing more? One big reason is state support—or the lack of it. Oregon provides just $876 in grant aid per full-time student. That’s far less than Washington ($1,790), California ($1,048), and even the national average ($1,050), according to SHEEO.

The result: nearly half of Oregon students still can’t afford to attend public college—even after aid. With tuition hikes of 3–5% planned for 2025–26, the student debt situation may worsen.

Cost of Living: The Hidden Debt Multiplier

Living expenses have a huge impact on how manageable student debt really is—especially in these three states:

California: 50% above the national average, with housing 116% higher
Washington: Among the top 10 most expensive states, ranked 40th for affordability
Oregon: 17% higher than the national average, with housing costs 39% above average

These costs often force students to take on more debt—not necessarily to pay for tuition, but to cover rent, food, transport, and other living expenses.

Post-Graduation Employment: Mixed Signals

Once students graduate, landing a job is key to repaying debt—but the outlook is a bit murky:

National unemployment among recent grads rose to 5.8% in Q1 2025—the highest since 2021
California: Starting salaries in cities like San Francisco ($95,555) and San Jose ($91,453) are up, but the broader job market has tightened
Washington: College grads earn about $78,485 on average—around 1.75x more than high school grads
Oregon: Projected to add 170,000 new jobs by 2033, with healthcare leading at 13% projected growth

What This Means for Students and Families

The West Coast may offer more manageable debt than other parts of the U.S., but there's no one-size-fits-all story:

California: Lowest debt levels, but also the highest living costs—which can complicate repayment
Washington: Reasonably low debt, but looming financial aid cuts could reverse that progress
Oregon: Higher average debt due to lower grant funding, despite being a Western state

When weighing college options, students and families need to look beyond just tuition. Factoring in state aid programs, living costs, and post-graduation job prospects can make a real difference. Also worth noting—federal loans usually offer better terms than private ones, which is important in states like Oregon and Washington where private borrowing is more common.

Lastly, finishing your degree remains a key buffer against loan default. Research shows most defaulters have smaller loan balances—and often didn’t complete their studies.

Staying informed, asking questions, and planning ahead can go a long way in navigating the complicated world of student debt on the West Coast.